A W-4 form, officially known as the Employee's Withholding Certificate, is a tax form used in the United States by employees to inform their employer of the amount of federal income tax to withhold from their paychecks. The primary purpose of the W-4 is to ensure that the correct amount of tax is withheld based on the employee's financial situation.
The form includes information such as:
- Personal details of the employee (name, address, Social Security number).
- Filing status (e.g., single, married, head of household).
- Number of dependents.
- Other adjustments that might affect withholding (such as additional income or deductions).
Employees can update their W-4 form anytime their financial situation changes (e.g., marriage, divorce, having children, or significant changes in income), and it is important to fill it out accurately to avoid under- or over-withholding taxes. The employer uses this information to calculate how much federal tax to withhold from an employee's paycheck and send it to the IRS on behalf of the employee.
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